Lawyer Anand Ahuja said Tuesday that the actress reached a settlement with the brokerage before withdrawing the lawsuit a day earlier. Ahuja and an E-Trade Financial Corp. spokeswoman said the terms of the agreement were confidential.
Lohan had claimed E-Trade was referring to her in a Super Bowl ad that mentioned a "milkaholic" named Lindsay. The commercial featured the brokerage's familiar talking babies.
The "Mean Girls" star spent two weeks in jail in California this year for violating her probation in a 2007 case involving drug use and driving under the influence.
E-Trade called Lohan's claims meritless.